Answer:
Interest earned= $6,060
Step-by-step explanation:
Giving the following formula:
Principal (P)= $12,625
Interest (r)= 4%= 0.04
Period of time (t)= 12 years
To calculate the interest earned after twelve years, we need to use the following formula:
I= P*r*t
I= (12,625*0.04*12)
I= $6,060
Interest earned= $6,060
